When to invest in gold 2016

## When to Invest in Gold in 2016

### Introduction

Gold is a valuable asset that has been used as a store of value for centuries. In recent years, gold prices have been volatile, but they have generally trended upwards. This has led many investors to consider adding gold to their portfolios.

However, it is important to know when to invest in gold. If you buy gold at the wrong time, you could lose money. This article will provide you with some guidance on when to invest in gold in 2016.

### Factors to Consider

There are a number of factors that you should consider when deciding whether to invest in gold. These factors include:

* **The economic outlook.** Gold is often seen as a safe haven asset during times of economic uncertainty. This is because its value is less likely to fluctuate than the value of other assets, such as stocks and bonds. As a result, gold prices tend to rise when the economy is weak.
* **Interest rates.** Gold is also a good investment when interest rates are low. This is because gold does not pay interest, so you will not lose money if interest rates rise.
* **Inflation.** Gold is a good hedge against inflation. This is because its value tends to rise when the cost of goods and services increases.
* **The supply of gold.** The supply of gold is limited, which means that its value is likely to increase over time.

### When to Invest in Gold

Based on the factors above, there are a few times when it may be a good idea to invest in gold. These times include:

* **When the economic outlook is uncertain.** If you believe that the economy is headed for a downturn, you may want to consider investing in gold as a safe haven asset.
* **When interest rates are low.** Low interest rates make gold a more attractive investment. This is because you will not lose money if interest rates rise.
* **When inflation is rising.** Gold is a good hedge against inflation. If you believe that the cost of goods and services is going to increase, you may want to consider investing in gold to protect your portfolio.
* **When the supply of gold is limited.** The supply of gold is limited, which means that its value is likely to increase over time. If you believe that the supply of gold is going to dwindle, you may want to consider investing in gold.

Read more  How to invest directly in gold

### How to Invest in Gold

There are a number of ways to invest in gold. These methods include:

* **Buying physical gold.** You can buy physical gold in the form of coins, bars, or jewelry. Physical gold is a good option if you want to have direct control over your investment. However, it is important to note that physical gold can be difficult to store and transport.
* **Buying gold ETFs.** Gold ETFs are exchange-traded funds that track the price of gold. Gold ETFs are a good option if you want to invest in gold without having to buy physical gold. However, it is important to note that gold ETFs can be volatile and their value can fluctuate.
* **Buying gold mining stocks.** Gold mining stocks are stocks of companies that mine gold. Gold mining stocks are a good option if you want to invest in the gold industry. However, it is important to note that gold mining stocks can be volatile and their value can fluctuate.

### Conclusion

Investing in gold can be a good way to diversify your portfolio and protect your wealth. However, it is important to know when to invest in gold. If you buy gold at the wrong time, you could lose money. By following the advice in this article, you can increase your chances of making a profit on your gold investment.

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